EmailThursday's U.S.-less session was highlighted by a meeting between German Chancellor Merkel, French President Sarkozy and new Italian Prime Minister Monti. It didn't seem to accomplish much in regard to solving the eurozone debt crisis, as the leaders insisted there would be no wider role for the European Central Bank and dismissed talk of a eurobond.
European markets, which had rallied in morning trade Thursday after Asia rebounded, gave up those gains following the meeting.
Buy hey, what's the rush, right?
Oh, did we mention that, following another disappointing Italian bond auction Friday, the yield on the country's benchmark 10-year Note has spiked back above 7.00%, the same level that led Greece, Ireland and Portugal to seek bailouts.
The yield, currently trading at 7.30%, has not seen a spike like this since November 9. That day, Italy's MIB plunged 3.8%, Germany's DAX lost 2.2% and the S&P 500 gave up 3.7%.
Admittedly, declines are much more modest Friday morning. Italy is down 2.1% while Germany is off 0.6%. S&P 500 futures are currently indicated to open 0.5% below fair value.
Some of that could be due to the shortened session in the U.S. Friday. Equity markets close at 1:00 p.m. ET while bond markets close at 2:00 p.m. ET.
It also could be due to the focus on Black Friday, though we will not know the results from the National Retail Federation until Monday.
While the decline in equity markets might be modest, the euro continues to get hit, approaching its 10-month low from early October around 1.32 against the dollar. The greenback is trading broadly higher this morning, also seeing notable gains against the safety currencies -- Japanese yen, Swiss franc.
Treasuries are surprisingly lower this morning, albeit modestly.
Finally, commodities are under pressure, though natural gas is outperforming to the upside following its recent, sharp decline.
Dave is a Research Analyst for Briefing Research, Briefing.com's institutional research service. To request a free trial, please email researchsales@briefing.com.
